9 High Yield, Managed Distribution Funds and 12 Dividend Stock Alternatives

Exchange traded funds (ETFs) and closed-end funds (CEFs) are composed of many different individual securities. This usually results in uneven dividend distributions. Some funds have tried to address this with a managed distribution policy. In short, a managed distribution policy is management’s commitment to make a fixed periodic dividend payment.How Managed Distribution Policies Work Since many funds distribute most of their income to shareholders in order to avoid taxation, funds with a managed distribution policy sometimes have cash left over at year-end that needs to be distributed. This is is normally done as a “special” one-time dividend. However, if the fund generates insufficient cash to cover the dividend, the fund is forced to sell some investments to cover the cash... more

Diageo: A Good Stock for Dividend Growth Investors

Summary Diageo is a leading producer of spirits, wines, and beers in the world., Sales growth over the last five-year period: 7%, Earnings growth over the last five-year period: 5%, Dividend growth over the last five-year period: 5%, The current dividend yield is over 3.4%, The balance sheet is a weakness; Diageo has a lot of debt., Overall, I think the company would make a decent investment, I but would like to see it at a lower price..... more

FBR Capital Expect $0.60 Dividend to Be Maintained From Cypress Sharpridge Investments (CYS) Despite December Settlement

FBR Capital reiterates an 'Outpeform' rating on Cypress Sharpridge Investments, Inc. (NYSE: CYS), PT $16. FBR analyst says, "We reiterate our rating and price target on the shares of Cypress following CYS' successful secondary pricing of 14.95 million shares last week in a follow-on offering. The deal, which was materially upsized from the company's initial indication of 10 million shares, resulted in net proceeds of roughly $185 million. We view the significant demand as evidence that the market is beginning to recognize the risk-adjusted value provided by best-in-breed agency mREITs, of which we believe Cypress is a leader." To see all the upgrades/downgrades on shares of CYS, visit our Analyst Ratings page. The 52-wk trading range is $10.40 - 14.69.... more

Consolidated Communications (CNSL) Declares $0.38738 Quarterly Dividend; 8.4% Yield

Consolidated Communications Holdings, Inc. (Nasdaq: CNSL) declared a quarterly dividend of $0.38738 per common share, $1.54952 annualized. The dividend is payable on November 1, 2010 to stockholders of record at the close of business on October 15, 2010. The ex-dividend date is October 13, 2010. Yield on the dividend is 8.4%.... more

Another Reason for Companies to Pay Dividends

I am a firm believer that companies that pay dividends by default represent an elite group of sound enterprises which should comprise an investor’s watchlist for further research. The second criterion should be focusing on fundamentals in order to determine whether the company could afford to not only generate enough cash to grow and maintain its business, but also to be able to distribute any excess to shareholders in the form of dividends. The third criterion that I use is that the company has been able to grow distributions for at least ten consecutive years. These criteria pretty much decrease the list of eligible dividend stocks to less than 300.Nonbelievers of dividend investing often claim that only poorly managed companies or companies which are in decline tend to pay dividends.... more

4 Dividend Aristocrats to Consider

In a continued effort to expand the focus of my site's screens and hypothetical portfolios, this article is a fifth follow-up to an article written in early April focusing on the S&P 500 Dividend Aristocrats. The S&P 500 Dividend Aristocrats index measures the performance of large cap, blue chip companies within the S&P 500 that have followed a policy of increasing dividends every year for at least 25 consecutive years. The current list has 43 constituents and the entire list is available from Standard & Poors or on my site. If an investor wanted to replicate the list, the best option is probably SDY, the SPDR Dividend ETF, which is a variation of the Aristocrats - it seeks to replicate the “High Yield” Dividend Aristocrats Index. An alternative is to start with the Aristocrat list... more

McCormick & C. (MKC) Declares $0.26 Quarterly Dividend; 2.5% Yield

McCormick & Company, Incorporated (NYSE: MKC) today declared a quarterly dividend of $0.26 per share, $1.04 annualized. The dividend is payable October 25, 2010, to shareholders of record on October 11, 2010. The ex-dividend date is October 7, 2010. Yield on the dividend is 2.5%. /premium_content.php... more

IDEX Corp. (IEX) Declares $0.15 Quarterly Dividend; 1.7% Yield

IDEX Corporation (NYSE: IEX) today announced that its Board of Directors has approved a regular quarterly cash dividend of $0.15 per common share, $0.60 annualized. The next dividend will be paid October 29, 2010 to shareholders of record as of October 15, 2010. The ex-dividend date is October 13, 2010. Yield on the dividend is 1.7%.... more

OGE Energy (OGE) Declares $0.3625 Quarterly Dividend; 3.6% Yield

The OGE Energy Corp. (NYSE: OGE) Board of Directors has declared a fourth-quarter dividend of $0.3625 per common share of stock, $1.45 annualized. The dividend is to be paid October 29, 2010, to shareowners of record on October 8, 2010. The ex-dividend date is October 6, 2010. Yield on the dividend is 3.6%.... more

iMergent (IIG) Declares $0.02 Quarterly Dividend; 2% Yield

iMergent, Inc. (AMEX: IIG) declared a quarterly cash dividend of $0.02 per share, $0.08 annualized. The dividend is payable on October 14, 2010 to stockholders of record as of October 7, 2010. The ex-dividend date is October 5, 2010. Yield on the dividend is 2%.... more